In your words describe and or explain the relation between savings and investment in an open market. How the government use savings and investment to determine economic growth. You can use the appropriate equation in explaining your answer

Q: 6. Study Questions and Problems #6 Complete the following sentences to explain why it is so…

A: Step 1: Answer: It is difficult for poor LDCs to generate investment in capital in order to increase…

Q: (This is problem 7, page 239 of the textbook.) An economy has a per-capita production function y =…

A: Given information Per capita production function y=Akαh1-αy--per worker outputk--capital labor…

Q: If and when the demand of loanable funds shifts to the left: Group of answer choices 1. This is…

A: In the market for loanable funds, the equilibrium is achieved at the intersection of demand for…

Q: Describe all the circular flows of using the relevant diagram.

A: The economic model depicting the circular movement of money between firms/producers and households…

Q: What is the relationship between savings, capital formation, and consumption?

A: The savings is the money that is not consumed or kept aside for the later use, the saving is the…

Q: What are three generators of economic growth?  List and explain them.  What are three determinants…

A: Economic-growth indicates the increase in the economic-activity undertaken by one economy. This is…

Q: In the era of Pandemic, Indonesia’s government is trying to ensure that all of it’s people could…

A: The total amount of money that individuals and institutions in an economy have agreed to save and…

Q: tion 11 nation's potential output/GDP is best described as: The maximum growth rate of output/GDP a…

A: GDP is the market value of final goods and services produced in the country within a period of time

Q: Suppose that two countries (A and B) are exactly alike in every respect except that the citizens of…

A: The Solow Growth Model, an exogenous model of economic growth, examines changes in an economy's…

Q: 4.2 I dont understand how im supposed to do this without any numbers to use

A: In this case the rule of 70 is used.The rule of 70 basically estimates the number of years in which…

Q: Using a graph for the loanable funds market of this economy, show what are the effect on the…

A: The market for loanable funds describes how borrowing happens in the market. The supply of loanable…

Q: In the model of the market for loanable funds, which of the following best describes why the supply…

A: Supply curve: It shows the relationship in graphical terms between the price and quantity of the…

Q: 28.A puzzle: The share of GDP devoted to investment was similar for the United States and South…

A: The total value associated with all the final goods and services produced in an economy in a year is…

Q: 1. With the start of the campaign for presidential elections in 2020, candidates proposed a new…

A: With the presidential elections of the USA around the comer, the candidates have proposed different…

Q: 41. Assume that a country's per-worker production is y = k"2, where y is output per worker and k is…

A: At the steady-state, an investment is equal to depreciation. That means that all of investment is…

Q: 4. According to Malthus, how does economic growth and population relate to each other?

A: According to Thomas Malthus, an English economist and demographer who lived inside the 18th and 19th…

Q: Why is "financial capital" unable to be categorized as an attribute of production?

A: Financial capital refers to funds or monetary assets that are used by businesses or individuals to…

Q: Suppose the people in a certain economy decide to increase saving and add more to their stock of…

A: We may use three panel graphs to show the potential for growth in an economy where people choose to…

Q: 1.  Discuss the factors that contribute to economic growth.

A: It is a question with multiple questions, therefore we will do the first question. To get solved the…

Q: The table below provides the average annual growth rates (%) in Nominal GDP, Real GDP, Real GDP per…

A: GDP measures the market value of final goods and services produced by an economy during a given…

Q: QUESTION 1 Assume a Cobb-Douglas production with capital share 1/3; total factor productivity equal…

A: Since you have posted multiple questions, we will solve the first one for you. If you want any…

Q: 56. Which of the following is a cost of economic growth? improvements in technology…

A: Economic growth is a process where production increases which means gross domestic product…

Q: 2. You are a manager at a large shampoo company and on the search for future markets. You identified…

A: GDP per capita is calculated by dividing the economy's total gross value added by all resident…

Q: Question 7 What is meant by economic growth and why is it one of the most important goals…

A: Economic growth takes place when production increases along with consumption and investment.…

Q: Imagine a country where Real GDP per person was equal to $650 in 1870 and it grew at an annual rate…

A: Given the information: The real GDP per person in 1870 = $650 Annual rate = 6%

Q: For the following scenario, draw a correctly labeled loanable funds graph for each nation and…

A: A loanable fund market is a financial market where the savers come as the suppliers of loanable fand…